I've been experiencing the same issue on macOS 26.3 (M3 MacBook Air) — audio gradually becomes very quiet and muffled across all outputs (built-in speakers and Bluetooth), only recoverable by a full reboot.
After some investigation, I found that "sudo killall coreaudiod" alone is insufficient — in fact, it seemed to make things slightly worse each time. The key discovery was that when I killed coreaudiod without killing audio client processes, the audio would briefly recover (~1 second) before immediately degrading again. This suggests that some client process holds corrupted state that re-infects the freshly restarted audio stack.
What actually works (without reboot):
Kill all processes that have CoreAudio loaded, then restart all audio daemons (not just coreaudiod — also audiomxd, audioclocksyncd, etc.):
lsof 2>/dev/null | grep CoreAudio | awk '{print $2}' | sort -un | xargs kill -9 2>/dev/null
sudo killall -9 coreaudiod audiomxd audioclocksyncd audioanalyticsd audioaccessoryd AudioComponentRegistrar
More complete script and details here: https://gist.github.com/metrovoc/0b5e3590c6069cf99b01559863bc2ce4
Still working on identifying which specific app is the primary trigger. Running Xcode/CoreSimulator in the background appears to be a contributing factor.